The trader I speak with for this interview watches for confluence of chart patterns and volume. He explains technical analysis chart patterns are his favorites and how he watches for those to form along with specific volume. We discuss the exponential moving average (EMA) he uses to find great entry points and how he determines where he places his stop losses and profit targets. I ask him specifically how he learned how to spot chart patterns as they are forming, rather than after the fact when everyone can see them. Finally, we discuss how a mentor helped him become profitable and he offers advice for others looking for their own trading mentor.
Some traders say tape reading is dead because high frequency trading algorithms and dark pools have made it impossible to make decisions based on the tape. Not so says this full-time prop trader. Tape reading by itself may be tough on certain stocks, but when combined with simple charts of price and volume, tape reading is still incredibly relevant and valuable for a trader. In this interview, we talk about how this young full-time trader used pure persistence and determination to go from knowing very little about trading to being the only one left in his original class of twenty at the firm. We discuss his methods for finding money-making trades in the tape and order flow by combining that information with price charts on several timeframes. He also explains the things he did early on in his learning curve that made a big difference in his consistency and why he thinks he was able to make money after a learning period while his fellow traders had to go back to their jobs.
There's a funny thing that seems to happen to traders who cross the line from floundering to consistent - they simplify. Every traders needs to have an "edge." But that edge doesn't have to be something complicated or difficult to describe in 30 seconds. Today's interview proves that. Steven Fox is a former marine drill instructor, turned full-time trader as of just three months ago. Many of the traders I interview have been at it longer, but I wanted to find someone who had made the leap recently and ask them how they did it. In this interview Steven describes the simple tools he uses to find great day trades in the futures markets. Since he doesn't use anything proprietary, he describes his system in full, taking us step-by-step through the charts he watches and how he decides when it's time to buy or sell. He trades all kinds of futures, from S&P E-minis to gold. Listen in and hear how Steven makes money trading with simple patterns anyone can find, if they have discipline.
"Most indicators don't work the way most people think they should. And it's not the indicator's fault." I don't interview too many book authors, but Adam is a legitimate trader and an expert in technical analysis. His book, The Art and Science of Technical Analysis is quickly becoming the "new bible" for technical traders who are looking for specific patterns and setups they can use to find money-making trades. In this interview, I speak with Adam about how he gets an edge in his own trading and what every trader should do in order to find their own edge in the markets.